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Do I need T2200S to take the Work-From-Home deduction?

For the 2020 and 2021 tax years, Canadians were allowed a special Work-From-Home credit for time spent working from home during the Covid-19 pandemic. The credit can be calculated two ways: using a flat rate, or doing a calculation involving a percentage of utilities and/or rent costs. The flat rate requires no additional documentation. Any [...]

Salary vs Dividends: Which is better?

This is the third post in our series for incorporated people about salary vs dividends. The first part can be found here. The second part is here. In previous blog posts [ here and here ] we’ve discussed the tax implications for an owner paying themselves via a salary vs dividends. But there are other [...]

Salary vs Dividends: How to pay less tax?

This is the second post in our series for incorporated people about salary vs dividends. The first part can be found here. Taxes are usually the main consideration when a corporation's owner is deciding whether to pay themselves a salary, dividends, or some combination of the two. Some people believe that for tax purposes dividends [...]

Salary vs Dividends: What’s the difference?

This is the first post in our series for incorporated people about salary vs dividends. Salaries and dividends seem similar from the outside perspective of the person receiving money. However they are conceptually very different from one another from the inside, i.e. from the corporation’s internal accounting perspective. Begin with the most basic calculation of [...]

RRSPs: What you should know if your income is low

So it’s RRSP season again, and you’re trying to decide how much (if anything) to contribute this year. This is especially a question if you didn’t end up earning much. Here are the top three things you need to know about RRSPs in a low-income year. 1. RRSPs are less helpful to people with low [...]

What do the RRSP figures on my Notice of Assessment Mean?

Q: After a few years of low income, I'm finally ready to start contributing to my RRSP again. But looking at my Notice of Assessment I completely forget what the RRSP numbers mean. My notice from last year's taxes gives me the following: RRSP deduction limit: $15,000 Unused contributions previously reported & available to deduct: [...]

Reporting Income from Artist’s Grants

When you receive an artist's grant in Canada from the Canada Arts Council or provincial granting body, the standard advice you'll get is to report it on line 13000 as 'Other Income.' But for working artists, this is not the only, nor the best, option. Recognizing A Grant From A Slip The grants we're discussing [...]

Are you a Tax Resident of Canada?

Your tax residence is the jurisdiction (country) whose tax laws you primarily abide by and (usually) where you pay the most tax. Since the tax laws vary so much from one country to the next, the question of which country you reside in for tax purposes can be vital to your financial picture. But determining [...]

Taxes for immigrants entering Canada

Question: I am planning to move to Canada next year. What do I need to know about my Canadian tax obligations when I enter? Answer: If you are just entering Canada next year, there’s really nothing you need to do in terms of taxes here right away. However it's best to familiarize yourself with the [...]

Should I Contribute To My RRSP or my TFSA? The differences, pros and cons of these popular registered accounts The Registered Retirement Savings Plan (RRSP) and it’s younger sibling the Tax-Free Savings Account (TFSA) are two of the most popular tax options for the average Canadian. Before deciding which, if either, to contribute to, here’s [...]

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